As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the life insurance industry, including Horace Mann Educators (NYSE:HMN) and its peers.
Life insurance companies collect premiums from policyholders in exchange for providing a future death benefit or retirement income stream. Interest rates matter for the sector (and make it cyclical), with higher rates allowing insurers to reinvest their fixed-income portfolios at more attractive yields and vice versa. Additionally, favorable demographic shifts, such as an aging population, are driving strong demand for retirement products while AI and data analytics offer significant opportunities to improve underwriting accuracy and operational efficiency. Conversely, the industry faces headwinds from persistent competition from agile insurtechs that threaten traditional distribution models.
The 15 life insurance stocks we track reported a slower Q3. As a group, revenues beat analysts’ consensus estimates by 4.9%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Horace Mann Educators (NYSE:HMN)
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Horace Mann Educators reported revenues of $438.5 million, up 6.4% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ book value per share estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $45.08.
Is now the time to buy Horace Mann Educators? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Aflac (NYSE:AFL)
Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE:AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.
Aflac reported revenues of $4.41 billion, up 2.8% year on year, falling short of analysts’ expectations by 0.9%. However, the business still had a very strong quarter with a solid beat of analysts’ book value per share estimates and a beat of analysts’ EPS estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $108.81.
Is now the time to buy Aflac? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Brighthouse Financial (NASDAQ:BHF)
Spun off from MetLife in 2017 to focus specifically on retail financial products, Brighthouse Financial (NASDAQ:BHF) provides annuity contracts and life insurance products designed to help individuals protect wealth, generate income, and transfer assets.
Brighthouse Financial reported revenues of $2.17 billion, flat year on year, falling short of analysts’ expectations by 4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net premiums earned estimates.
The stock is flat since the results and currently trades at $65.33.
Read our full analysis of Brighthouse Financial’s results here.
Lincoln Financial Group (NYSE:LNC)
Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
Lincoln Financial Group reported revenues of $4.78 billion, up 3.8% year on year. This result came in 0.7% below analysts' expectations. Zooming out, it was a mixed quarter as it also produced an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates.
The stock is up 2.9% since reporting and currently trades at $41.19.
Read our full, actionable report on Lincoln Financial Group here, it’s free for active Edge members.
Unum Group (NYSE:UNM)
Tracing its roots back to 1848 when financial security for workers was virtually non-existent, Unum Group (NYSE:UNM) provides workplace financial protection benefits including disability, life, accident, critical illness, dental and vision insurance primarily through employers.
Unum Group reported revenues of $3.25 billion, flat year on year. This number missed analysts’ expectations by 1.7%. It was a softer quarter as it also recorded a significant miss of analysts’ book value per share estimates and a miss of analysts’ net premiums earned estimates.
The stock is up 1.9% since reporting and currently trades at $74.30.
Read our full, actionable report on Unum Group here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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